LTC — Interim / Quarterly Report 2024

Nov 6, 2024

2 0 2 4 / 1 0 / 3 0 3Q24 Earnings Conference LITEON Technology

法說會議程

• Host, 3Q24 Results Julia Wang, IR Senior Director
• Operation Plan and Growth Strategy Anson Chiu, President
• Q&A

Safe Harbor Notice

LITEON Technology's statement of its current expectations are forward-looking statements which are subject to significant risks and uncertainties. Actual results may differ materially from those contained in any forward-looking statements.

The numbers of the presentation are prepared under IFRS.

Core Business & Profit expansion by high value business since 2021

*Excludes Image department business **Discontinued some consumer and OEM products

3Q24 & 9M24 Executive Summary

【3Q24】:

• 3Q24 consolidated sales reached NT\$36.8 billion. Gross Margin and Operating Margin reached 22.4% and 10.7%, up 0.2 ppt and 0.8 ppt QoQ respectively, attributable to synergies of enhanced high-value business, product-mix optimization, implementation of AI and digitalized operational management.
• RD expense continued to increase, accounting for 5.3% of 3Q sales, reflecting steady investment in cloud, optoelectronics, 5G and new business.
• 3Q Net profits reached NT\$3.4 billion and EPS of NT\$1.48, up 9% QoQ.

【9M24】:

• 9M24 consolidated sales reached NT\$98.8 billion; Gross margin and Operating margin were 21.7% and 9.5%; EPS of NT\$3.88.

【 Core businesses 】

• Power Management in Cloud computing grew steady, benefited from model upgrade on AI server and cloud computing products.
• Product-mix optimization in IT&CE , coupled with increased shipments of high-end power supplies and intelligent input peripherals.
• Core application in Opto-electronics enhanced continuously, including visible Mini LED and invisible LED.

Operation Plan and Growth Strategy

Efficient Infrastructure

To achieve IOE, starting with Home Energy Mgmt Solution in Smart Grid : Available in the US, with Coast-to-Coast Expansion

Core Competence and Advantages

Power

Extension in Global Leading Power Management Technology

Talent

Integrated Software and Hardware RD Team and Market Development Talent

AI

AI-Driven Energy Management System: App to optimize user experience, AI-driven electricity demand prediction, cost reduction, and uninterrupted power backup

Solution

An Integrated Solution Combining Machine Learning, Big Data, and Intelligent Predictive Models

North America Expansion

Team Building

Sales, logistics, and customer service teams are now established on the West Coast

Regional Expansion

• Targeting key states with high solar and energy storage batteries adoption
• Expand from the West Coast to the East Coast

Channel Coverage

Partnering with installers and contractors; building a comprehensive distribution network long-term

Operation Plan and Growth Strategy

Growth strategy and milestones

• Debuting at the 2024 OCP Global Summit : NVIDIA-Powered Integrated AI Server Rack-level Solution.
• Leveraging our power management expertise, software and hardware system integration capabilities, we are launching a Home Energy Management System (HEMS) in North America in 3Q24. Under the IOE strategy, we aim to achieve Net Zero by advancing energy storage, saving, control, and conversion applications.
• 2023 Sustainability Report highlights our commitment to green environment management, social responsibility, and robust corporate governance through the three ESG dimensions, demonstrating our dedication to sustainable operations.
• In cloud power solution, our 33KW Power Shelf for next-generation AI server starts shipments in 4Q24, heading for mass production in 1Q25, with solid growth expectation in 2025.
• In liquid cooling systems, Liquid to Air sample orders will be shipped in 4Q24, and Liquid to Liquid has completed testing, with shipments expected to commence in 2025.
• We will increase liquid cooling capacity in Vietnam and deploy personnel in major North American cities. Our after-sales service team will grow, providing customized, efficient services and global supply chain management.

Outlook for Q4

• High-value core business will grow sequentially, mainly driven by cloud computing power solutions, optoelectronic semiconductors, as well as the high-end power supplies for IT applications, and smart input peripherals.
• Cloud business will benefit from increased shipments of high-end power management systems.
• Opto-Semiconductors will deliver sequential growth, resulting from the increasing demand for visible and invisible LED applications in AI machine vision, wearable and surveillance markets.
• Growth drivers of the IT segment are the advanced input devices and increasing shipments of satellite power supplies.

光電節能 環境永續 Empowering A Green Future

https://www.liteon.com/en-us liteontech.ir@liteon.com